Vietnam“s Ministry of Industry and Trade (MOIT) has reportedly decided not to use safeguard measures on imported float construction glass, after six months of investigation.
Prior to the decision, V…
Vietnam“s Ministry of Industry and Trade (MOIT) has reportedly decided not to use safeguard measures on imported float construction glass, after six months of investigation. Prior to the decision, Viglacera Float Glass Company, Vietnam Float Glass Company and Vietnam Float Glass Industry, three domestic construction glass producers, petitioned MOIT regarding the affects of imports on local production, requesting the ministry to investigate where to apply safeguard measures which they think are necessary to protect local production. The companies proposed that the government impose an absolute duty rate of USD 0.60 per square meter on all types of imported float glass for a period of four years. Tran Quoc Thai, chairman of the Vietnam Glass Association, said that many glass producers must close their workshops because of glass imports, adding that Vietnam Glass Industries under Japan“s Nippon Sheet Glass Group, one of the eight member companies of the association, has completely stopped production. Meanwhile, both Dap Cau Glass Factory under Viglacera and Kien An Glass Factory in Hai Phong have closed a production line. MOIT concluded, however, that the main reason creating difficulties for domestic producers is not imports, but the high cost of raw materials. Domestic producers have also suffered because of the economic crisis and trade fraud. Vu Huy Hoang, a minister of MOIT, decided that imposing safeguard measures now prove to be unreasonable as domestic production has recovered gradually when prices of raw materials are similar to the global price.